US-based home ownership finance provider Unison Home Ownership Investors has received $40m in a series B round that included financial services firms Citi and Royal Bank of Canada.
F-Prime Capital, a branch of financial services and investment group Fidelity, led the round, and F-Prime partner David Jegen will join the board of directors at Unison. Citi invested through its venture capital arm, Citi Ventures.
Unison runs a financing service that helps users buy property through a model that reduces risk and debt by doubling the initial down payment.
Existing homeowners can also use the platform to access cash without paying interest or monthly payments, for a period of up to 30 years, instead paying a portion of their home’s value to Unison when they sell the property.
Arvind Purushotham, managing director of Citi Ventures, said: “As housing affordability continues to decrease, especially in urban areas, Unison brings a new financial solution for home ownership that benefits consumers, lenders and institutional investors.
“We are excited to join Unison on its mission of providing home owners with accessible financing options.”
Unison will put the series B cash into expanding in both new and existing markets as well as technology development and recruitment. It has not disclosed details of earlier funding, but raised an undisclosed amount from private investor Ron Suber in February 2017.